Plan for Increasing Charter Capital of the Local Development Investment Fund

According to legal regulations, charter capital is the amount of capital stipulated in the Charter on organization and operation of the Fund. The charter capital of the Fund must not be lower than the minimum charter capital of VND 100 billion as regulated in Clause 2, Article 30 of Decree 138/2007/ND-CP. The realized charter capital is the charter capital reflected in the Fund's accounting books.

Thus, when there is a need to increase charter capital, based on the objectives, tasks, development strategy, and sources of additional charter capital, the Fund will develop a plan for increasing charter capital to submit to the provincial People's Committee for decision. The plan for increasing the Fund's charter capital includes the following basic contents:

- Realized charter capital, balance of financial reserve funds, development investment funds, and other owners' capital sources at the time of formulating the plan to increase charter capital;- Explain the need and plan to expand the Fund's operations;- The amount of additional charter capital needed to meet the needs and expansion plans of the Fund;- Sources to increase charter capital;- Plan, roadmap, and authority to decide to increase charter capital.

Furthermore, the authority to decide to increase charter capital is specified in Circular 28/2014/TT-BTC as follows:

- In cases where the Fund supplements charter capital from the development investment fund, the Chairperson of the provincial People's Committee decides the plan to increase charter capital.- In cases where the Fund uses the local budget to supplement charter capital, the provincial People's Committee submits to the provincial People's Council for approval and implements the increase in charter capital for the Fund in accordance with the provisions of the Law on State Budget and regulations in Clause 1, Article 1 of Decree 37/2013/ND-CP.

More details can be found in Circular 28/2014/TT-BTC, effective from April 12, 2014.

Thu Ba

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